|The National Industrial Recovery act of June, 1933, authorized businesses to organize their industries by drafting codes which exempt from anti-trust laws but which required government approval.
To rally support for the program, a blue eagle was developed as the symbol of the program. Thus only those companies that participated in the program were allowed to display the symbol. The program was initially very successful. However, before long it became clear that the program had become overextended.
In May of 1935, in the Supreme Court ruling in the case of Schecter Poultry vs. the United States, the recovery act was deemed unconstitutional. According to the court, the act involved in illegal delegation of legislative power to the executive. It was also said to be an improper invasion by the federal government, of the realm reserved for the states.